Another huge hole in the accounting books of South Korean shipyard Daewoo Shipbuilding & Marine Engineering (DSME) is likely to be revealed soon.
Local media reported yesterday that DSME will post losses from its overseas units of up to KRW1trn ($861m). DSME reported a record second quarter operating loss of KRW 3.07trn ($2.65bn) with alleged accounting fraud hitting the yard hard. Since then lead creditor Korea Development Bank (KDB) has been going though DSME’s books.
Accounts at DSME’s overseas units in Romania, China and North America have all been scrutinised in the past couple of months.
Creditor banks will announce a restructuring plan later this month to revive DSME. Among likely measures will be the likely liquidation of DSME’s overseas subsidiaries including Daewoo Mangalia Heavy Industries, Romania’s largest shipyard.